Bitcoin Defies CLARITY Act Delay, Hack, and Rising Yields
The Bitcoin price showed resilience last week despite several negative developments in the crypto market. The U.S. Senate missed its deadline to pass the CLARITY Act, a significant piece of crypto legislation that would define which regulator oversees digital assets. The bill's delay was one of three major setbacks for the crypto market, along with a multimillion-dollar hardware wallet hack and rising government bond yields.
However, Bitcoin's price held firm at around $65,200, gaining 3.7% during the week. This strength is noteworthy given that these negative factors normally put pressure on risk assets like Bitcoin. The CLARITY Act would classify Bitcoin and Ethereum as commodities under the CFTC, while other tokens would fall under the SEC as securities.
The Senate's delay in passing the bill means that further development will resume after summer recess, with the Senate returning on September 14. The market has made it clear that it is not waiting for Congress to decide where Bitcoin trades, instead being driven by ETF flows, jobs data, and inflation reports.